Today's markets in general and currencies markets in specific witness high risk seeking and targeting for high yielding assets, that action was the result of boosted confidence after the release of very healthy manufacturing data from the U.S and China during August.
The US Institute of Supply Management released this morning its Manufacturing index for the month of August showing a cheerful incline of 56.8 where markets expected 52.8,from the previous reading of 55.5. Also the Institute Of Supply Management released the prices paid index where it inclined to 61.5from prior 57.5, while an incline of 55.3 was forecasted.
Early in the morning the Sterling Pound touched its lowest level since three weeks versus the Euro and Dollar after the U.K released disappointing Manufacturing PMI reading. The Japanese Yen fell as a result of the general heading towards high yielding assets ditching low yielding ones such as Yen and USD.
The Dollar index which measures the USD's performance versus six major currencies fell from today's opening level of 83.03 to currently trade at 82.49 recording its highest level at 83.05 and its lowest at 82.19. Gold prices fell reaching $1246.64 per ounce from the opening price of $1247.95. Oil surged from opening at $71.81 reaching $74.27.
The Euro/Dollar pair climbed up to this moment as a result of risk seeking movements to trade above the opening level of $1.2677 at $1.2803 recording an intraday high at $1.2855 and a low at $1.2661, the pair heads towards $1.2840 resistance level while support remains at $1.2770.
The Royal Pair Sterling/Dollar climbed due to the previously mentioned reasons to trade above the opening level of $1.5344 at $1.5458 recording a high at $1.5490 and a low at $1.5334. By this the pair broke the $1.5400 resistance levels turning it to support and rising to the next resistance level at $1.5555.
Finally the Dollar/Yen pair climbed to trade above the opening level of ¥84.19 at ¥84.47 recording a high at ¥84.66 and a low at ¥83.66, the pair faces resistance at ¥84.85 and support at ¥83.85.